Julie Pace v. James Michael Pace

Court of Appeals of Mississippi·Decided June 11, 2024·No. 2022-CA-01259-COA·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI NO. 2022-CA-01259-COA

JULIE PACE APPELLANT v. JAMES MICHAEL PACE APPELLEE

DATE OF JUDGMENT: 11/21/2022 TRIAL JUDGE: HON. DEBORAH J. GAMBRELL COURT FROM WHICH APPEALED: FORREST COUNTY CHANCERY COURT ATTORNEY FOR APPELLANT: NICHOLAS ANTHONY SAKALARIOS ATTORNEYS FOR APPELLEE: MARY LEE HOLMES PAUL HARDIN HOLMES

NATURE OF THE CASE: CIVIL - DOMESTIC RELATIONS DISPOSITION: AFFIRMED IN PART; VACATED IN PART -

6/11/2024

MOTION FOR REHEARING FILED:

BEFORE BARNES, C.J., GREENLEE AND McCARTY, JJ.

BARNES, C.J., FOR THE COURT:

¶1. This appeal originated from divorce proceedings between Julie and James Michael (Michael) Pace. In the 2019 divorce judgment, the Forrest County Chancery Court ordered the sale of the couple’s jointly owned commercial building, Pace Medical Clinic (or “subject property”), because Michael had abandoned his medical practice in 2018 and moved to California. However, Michael returned to Mississippi in 2020 and resumed his clinical practice at the subject property, which Julie had listed for sale.

¶2. Thus began a series of competing motions filed by the parties, many of which concerned the occupancy and sale of the subject property. After several hearings, the chancery court entered a judgment on August 11, 2022, ordering Michael to purchase Julie’s

one-half interest in the subject property and its contents; in return, Julie was to sign a quitclaim deed relinquishing her interest. The chancery court also denied Julie’s request for attorney’s fees from a prior contempt motion, as this issue had not been addressed in the court’s prior order of contempt related to that matter, and Julie had failed to provide the court with a detailed accounting of the attorney’s fees incurred.

¶3. Julie filed a motion for rehearing or reconsideration under Rule 59 of the Mississippi Rules of Civil Procedure. Michael subsequently filed a motion for contempt because Julie refused to sign the quitclaim deed to the subject property as ordered by the court. On November 21, 2022, the chancery court denied Julie’s Rule 59 motion and granted Michael’s motion for contempt. Julie appeals, alleging that the court erred (I) in citing Julie for contempt; (II) by failing to enforce the 2019 final judgment and division of marital property; and (III) by refusing to award Julie attorney’s fees related to the court’s 2020 contempt order against Michael.1

¶4. Because we find the chancery court lacked jurisdiction to grant Michael’s contempt motion, we vacate the court’s ruling finding Julie in contempt. We affirm the court’s decision ordering that Michael buy out Julie’s interest in the subject property, and we find no error in the court’s denial of Julie’s Rule 59 motion. We also affirm the chancery court’s ruling not to award Julie attorney’s fees.

FACTS AND PROCEDURAL HISTORY

1 Julie presents four issues in her brief, and we have combined Issues I and II (both concerning the contempt ruling) and Issues III and IV (both concerning the court’s ruling to compel the forced buyout).

¶5. Julie and Michael were married in 2005. The couple had one child, born in 2006. Julie filed for divorce on September 15, 2018, after discovering that Michael was having an extramarital affair. In the meantime, Michael had quit his medical practice and moved to California. The chancery court entered a final judgment of divorce on July 2, 2019. The chancery court ordered the parties to sell the marital home and subject property and awarded Julie “the remainder of the cash proceeds approximately $120,000 for the . . . sale and maintenance of the [subject property].” Julie was also to “maintain receipts or cancelled checks for all expenses associated with preparing the personal property, marital home and [subject property] for sale,” with Michael being “responsible for reimbursing her one half of those expenses.”

¶6. Michael appealed the court’s equitable division of the marital property.2 This Court affirmed the judgment. Pace v. Pace, 324 So. 3d 369, 381 (¶40) (Miss. Ct. App. 2021). In our ruling in Pace, we noted that the chancellor’s final judgment had directed Julie “to make necessary preparations” for the sale of the marital home and the subject property (i.e., Pace Medical Clinic). Id. at 380 (¶37). During the pendency of the appeal, however, Michael resumed his clinical practice in Mississippi; so he filed an emergency motion for an ex parte restraining order against Julie on July 15, 2020. Michael requested that the chancery court bar Julie from coming onto the subject property and enjoin her “from harassing Michael, his patients and causing further harm to Michael.”

¶7. In response, Julie asserted that Michael violated the court’s 2019 judgment by

2 Neither party requested a stay of the order to sell the properties pending the appeal from the original judgment.

“retak[ing] possession of the building and practic[ing] medicine from the building.” Included in her response was a motion for a citation of contempt based on Michael’s failure to pay the court-ordered child support. Julie’s contempt motion also asked the chancery court

to hold Michael in contempt for his failure to allow her to maintain and sell the building[;] to clarify that Julie has the exclusive right to use and occupancy of the building until such time as it sells[;] . . . [and] to enjoin Michael from interfering with her efforts to sell and maintain Pace Medical Clinic.

Alternatively, Julie asked the court “to require Michael to pay her . . . one-half of the current asking price for the building [(one-half being $75,000)], at which time she will convey her interest in the building to Michael.” She also sought attorney’s fees.

¶8. At the motion hearing on July 29, 2020, Julie’s attorney proposed that if Michael wished to resume his practice at the clinic then he “should go ahead and pay [Julie] her half of the equity in the building[.]” The court agreed that if the subject property could “be utilized” for Michael’s practice, then the parties should obtain “a fair market value of the building” and have Michael “pay [Julie] out of her one-half[.]” Julie noted that she “would prefer” that Michael buy her out and let her “go somewhere else” to conduct her newly formed nutrition business. However, because the appeal of the 2019 judgment was still pending before this Court, the chancery court declined to make any ruling related to the marital-property division. The court entered an order on August 11, 2020, finding Michael in contempt for his failure to pay the court-ordered child support and imposing a judgment of $14,400. The court’s order did not address the parties’ requests for attorney’s fees.

¶9. Ten days later, Michael filed a “Motion for Contempt, Modification of Custody,

Psychiatric Evaluation, and Other Relief.”3 A hearing was held on November 15, 2021, during which the chancellor inquired why the subject property had not been sold. Julie’s attorney complained that Michael was preventing a sale, stating: “[Julie’s] had realtors put signs up; we’ve had three potential buyers, and the signs get yanked out of the building.” Yet Michael’s attorney asserted that Michael was “ready to sell it . . . right now” if Julie had a buyer. Eventually, under the chancery court’s direction, the parties agreed to an appraisal of the subject property, as well as the marital home.

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